LOLC on an investment drive

Lanka Orix Leasing Company Plc (LOLC), on an aggressive investment drive is setting its sights on commercial leasing and possibly acquisition of part of the CIC Group, stock market sources say.

‘They are looking at the 25 percent stake that Chemanex has in Commercial Leasing and they seem to be interested in CIC as well,” a stock market analyst told The Sunday Times FT.

LOLC CEO Kapila Jayawardena while reiterating that the company is looking to become a complete financial services provider said that they will set their sights on companies which will fit the LOLC profile.

Analysts also said LOLC is looking at Hatton National Bank, because it needs to get into commercial banking in order to become a ‘total’ financial services provider. “Presently they do not have checking accounts and they cannot trade in the foreign exchange markets, etc. So there is definitely a missing link in their grand plan,” a stock market analyst pointed out.

Jayawardene said they will look at commercial banking when the time is right.

LOLC this week entered into an agreement with Lanka Indian Oil Company (LIOC) to set up service centres in all LIOC filling stations around the country. “We want to increase our geographic reach through cost efficient distribution channels,” Jayawardena said.